Treasury Investors' Focus Moves From Fed to Data

After taking a back seat to Federal Reserve policy and Washington politics for months, economic reports are ready to resume their role as main driver of day-to-day Treasury swings.

The most surprising development in the U.S. government bond market in this new year wasn't a last-minute budget deal to stave off billions in spending cuts and tax increases, together known as the fiscal cliff. Rather, it was a line in the minutes from the...